Congratulations on being a first time home buyer! I would suggest what was previously stated by doing 5% down with lender paid mortgage insurance to avoid it but it depends on the overall situation...for instance, how long to you plan to be in the home & do you plan to be aggressive with your payments. There may be other options that you would want to consider in which as a local lender I would love to help you with that. ALSO, did you know as a first time home buyer you may qualify for the Colorado Tax credit program where you can get 20% of the interest you pay back every year for the life of the loan as a direct credit? Rough numbers, a $300,000 loan amount will roughly give you about a $2,500 a credit on your federal taxes. Not a lenders offer this and not many realtors know about this. Don't want to miss out on it. Click on my profile for contact information.